The North American Free Trade Agreement NAFTA is a regulation implemented in January 1st 1994, in the three major economic powers in North America. Canada, Mexico and the United States of America. The goal of NAFTA was the eliminate tariff on trades of exports and imports between these nations. It was set to encourage the economical activity between theses three nations.NAFTA shows us how free trade increases wealth and competition, benefiting families, workers, manufacturers and consumers. One fourth of all American imports including things like crude oil, gold, machinery, fresh produce, livestock and processed foods come from Canada or Mexico.Canada and Mexico are America's largest supplier of imported goods. One third of American exports are destined to either Canada or Mexico. Natural gas being exported from the United States mostly goes to Ontario. While NAFTA has many cons it also has very significant pros.
Pros of NAFTA Although there a many cons of NAFTA, it has very significant pros as well. Since NAFTA was established in 1994 it has quadrupled trade between Canada, Mexico and the United States. Because this agreement eliminated tariffs. There was a 1.14 trillion dollar increase in 2015. NAFTA also lowered oil prices. Since the agreement came into effect the United States started to import oil from Mexico, decreasing the reliability of oil from the Middle East. The economic output in Mexico, Canada and the United States are growing by 0.5% per year because of this agreement. Agriculture, automotive, healthcare and financial services are the industries that are benefiting more from increased exports. Since 1993 NAFTA has created a growing total of 39.7 million jobs. Because of increased exports of NAFTA it created 25.1 million new jobs between 1994-2008 in the United States, 4.3 million in Canada and 9.3 million jobs in Mexico. In the first 4 years of NAFTA employment levels went up by 23% in all three nations. Not only did NAFTA encourage foreign investments but supported them as well. United States businesses invested 452 billions dollars in Mexico and Canada in 2012 . Mexico and Canada also invested 240.2 billion dollars in the United States in 2007, these investments were meant to help manufacturing, insurance and banking companies. It also helped innovating business by discouraging piracy.When NAFTA was introduced it reduced government spending. NAFTA allows businesses in the 3 nations part of this agreement to bid on government contracts. This allows for more competition and lowered prices for trade.
Bibliography Fontinelle, Amy. "North American Free Trade Agreement - NAFTA." Investopedia. September 09, 2017. Accessed November 17, 2017. https://www.investopedia.com/terms/n/nafta.asp.
Foreign Affairs and International Trade Canada, and Nafta. "North American Free Trade Agreement." Results | NAFTANow.org. April 01, 2008. Accessed November 17, 2017. http://www.naftanow.org/results/default_en.asp.
The North American Free Trade Agreement
NAFTA is a regulation implemented in January 1st 1994, in the three major economic powers in North America. Canada, Mexico and the United States of America. The goal of NAFTA was the eliminate tariff on trades of exports and imports between these nations. It was set to encourage the economical activity between theses three nations.NAFTA shows us how free trade increases wealth and competition, benefiting families, workers, manufacturers and consumers.
One fourth of all American imports including things like crude oil, gold, machinery, fresh produce, livestock and processed foods come from Canada or Mexico.Canada and Mexico are America's largest supplier of imported goods. One third of American exports are destined to either Canada or Mexico. Natural gas being exported from the United States mostly goes to Ontario. While NAFTA has many cons it also has very significant pros.
Pros of NAFTA
Although there a many cons of NAFTA, it has very significant pros as well. Since NAFTA was established in 1994 it has quadrupled trade between Canada, Mexico and the United States. Because this agreement eliminated tariffs. There was a 1.14 trillion dollar increase in 2015. NAFTA also lowered oil prices. Since the agreement came into effect the United States started to import oil from Mexico, decreasing the reliability of oil from the Middle East. The economic output in Mexico, Canada and the United States are growing by 0.5% per year because of this agreement. Agriculture, automotive, healthcare and financial services are the industries that are benefiting more from increased exports. Since 1993 NAFTA has created a growing total of 39.7 million jobs. Because of increased exports of NAFTA it created 25.1 million new jobs between 1994-2008 in the United States, 4.3 million in Canada and 9.3 million jobs in Mexico. In the first 4 years of NAFTA employment levels went up by 23% in all three nations. Not only did NAFTA encourage foreign investments but supported them as well. United States businesses invested 452 billions dollars in Mexico and Canada in 2012 . Mexico and Canada also invested 240.2 billion dollars in the United States in 2007, these investments were meant to help manufacturing, insurance and banking companies. It also helped innovating business by discouraging piracy.When NAFTA was introduced it reduced government spending. NAFTA allows businesses in the 3 nations part of this agreement to bid on government contracts. This allows for more competition and lowered prices for trade.
Bibliography
Fontinelle, Amy. "North American Free Trade Agreement - NAFTA." Investopedia. September 09, 2017. Accessed November 17, 2017. https://www.investopedia.com/terms/n/nafta.asp.
Amadeo, Kimberly. "6 Pros and Cons of NAFTA." The Balance. Accessed November 17, 2017. https://www.thebalance.com/nafta-pros-and-cons-3970481.
Foreign Affairs and International Trade Canada, and Nafta. "North American Free Trade Agreement." Results | NAFTANow.org. April 01, 2008. Accessed November 17, 2017. http://www.naftanow.org/results/default_en.asp.
Wilson, Lorimer. "NAFTA: The Major Imports & Exports Between the U.S. & Canada Are Surprising." MunKNEE dot.com. November 14, 2017. Accessed November 17, 2017. http://www.munknee.com/what-are-the-major-imports-exports-between-the-u-s-and-canada-this-list-might-surprise-you/.
Amadeo, Kimberly. "6 Benefits of NAFTA You May Not Even Realize." The Balance. Accessed November 17, 2017. https://www.thebalance.com/advantages-of-nafta-3306271.